A federal judge has frozen the assets of a Pompano Beach telemarketing firm that sold animated drawings and other art work as investments at prices the judge found to be ``grossly exaggerated.``

U.S. District Judge James Lawrence King also barred the company, its employees and associates from continuing to engage in what the court said were deceptive practices.

A company official suggested in court documents that the firm`s revenue from nationwide sales exceeded $8 million.

King`s order was announced on Wednesday after the Federal Trade Commission filed a complaint alleging a massive art investment fraud carried out by Cambridge Exchange Ltd. on Sample Road in Pompano Beach.

The complaint named Robert Sweeney of Davie, owner of Cambridge Exchange; Samuel Stier of Plantation, company president; and Richard Attas of Fort Lauderdale and Jeffrey Emmons of Miami Beach, both salesmen for the company.

The complaint also names U.S. Museum and Gallery Archives Inc. of Washington and the company`s president, Michael Stone of Boca Raton.

None of the defendants could be reached for comment on Wednesday.

A telephone recording at Cambridge Exchange said: ``We will be closed from April 20 to May 19 for extensive renovations.`` The recording urged callers to call back after May 19.

Under King`s ruling, the company has been taken over by an appointed receiver.

According to the complaint, beginning in 1991, Cambridge Exchange sent postcards to prospective customers across the country inviting them to enter a drawing to win valuable works of art. The company then got in touch with prospective customers again and told them they had been selected to receive an animation drawing that the company said was worth $500 or a supposedly limited edition print that the company said was worth $450, the complaint says.

Animation drawings are used in the production of animated feature films. Many thousands of such drawings are used to simulate movement by a cartoon character.

To receive the art, customers were required to pay $89, which the company said was to cover shipping and insurance as well as the cost of registering the drawing with an appraisal firm, the complaint says.

Customers were told the works of art were high-return investments that could double in value within six months. If customers had any doubts, they were told to contact U.S. Museum and Gallery Archives to obtain an appraisal and registration certificate, according to court documents.

The appraisals confirmed Cambridge Exchange`s assessments of the value of the offered art work, the complaint says.

After an initial sale, the company would reach customers again to sell more drawings. Cambridge Exchange said some of the art work was worth thousands of dollars, court documents say.

In his ruling, King found that one such piece of animation art work offered by the company from Pinocchio and the Emperor of the Night was worth $100 to $300. The judge said claims by Cambridge Exchange that the work was worth $5,000 ``are grossly exaggerated.``

The judge also found that offset lithographs, valued by the company at $450, were worth 20 cents.